Check out these Myths and the FACTS:
Myth: You cannot buy another home with a loan for 3 years.
Myth: I have a second mortgage or home equity line so I can’t do a short sale on my home.
Myth: The bank will not pay the commission for my real estate agent and/or thecosts of listing the property with a real estate agent will be passed on to me.
TRUTH: A real estate agents commission is taken out of the banks proceeds at close of
escrow. There should never be an out of pocket expense for a seller who lists
their home as a short sale with a real estate agent.
One HUGE reason to act NOW:
How much does it cost?
We have the facts about Short Sales. With our attorney partners, we are aware of the most current laws that many banks are still unaware of! Call us today at (602) 402-1617 for a free consultation with our Attorney backed negotiator for help and advice with the sale of your property.
When you work with our team, you are working with an ally that is dedicated to helping you with all of your real estate needs. We have successfully closed over 200 short sales and have the expertise and knowledge necessary to assist our clients in choosing the best possible solution.
We know laws, loopholes, deficiency information, mortgage laws, investor requirements, and other important facts that can help you avoid foreclosure, reduce the impact to your credit and potentially save you thousands of dollars! We understand the integral process of the short sale – from initial pricing to successfully closing your short sale. We understand that a short sale can be confusing. If you have questions or concerns about the short sale process, we would love the opportunity to assist you. Email us at ShortSales@HomeSalesScottsdale.com
We will handle every detail of the short sale transaction – from securing a buyer to negotiating with your lender for anti-deficiency, to facilitating the closing. By utilizing the assistance of a professional short sale negotiator and a real estate agent who is an expert at pricing, marketing, and closing your short sale we are able to successfully complete your sale quickly and with minimal impact to your credit.
Regardless of what anyone may tell you, a foreclosure, short sale, loan modification or deed-in-lieu of foreclosure can all have a negative impact on your credit. There is, however, a difference in the severity of the damage between them...
The difference between a foreclosure and a short sale can be huge. A foreclosure will show on your credit as a foreclosure/repossession, whereas a short sale will show as pre-foreclosure in redemption status, settled or even as a completely satisfied account. A foreclosure can prevent you from purchasing a home for 5-7 years whereas a short sale for 6 months to 2 years – which means you can purchase a home much sooner.
Foreclosures can also have a negative impact on credit card rates and limits, current or future employment and other areas of your life. Foreclosures generally have a more severe impact on your FICO score. Due to the high number of missed payments many people accrue over the course of their foreclosure, most people report a drop of 200-300 points in their score. If you are proactive about short selling your home, you can reduce this reduction significantly.
The short sale process is far more discrete than a foreclosure. Your friends, family and neighbors do not need to know you are doing a short sale on your property and your property will be marketed like any other home for sale. When the property closes escrow, you will move out and move on with your life. When your home is facing foreclosure, the bank generally posts a notice of trustee sale on your property. If the property does go to foreclosure and you or a tenant is living in the home there will be an eviction process followed by a listing – where it is generally marketed as a bank owned or foreclosure property.
A short sale allows you to get out of a home that is causing you a financial hardship and rid you of the debt associated with negative equity without facing foreclosure. We highly recommend that if you are considering a short sale you meet with a professional as soon as possible to reduce the impact on your credit and begin the negotiations with your lender. Best Wishes! ShortSales@HomeSalesScottsdale.com
Is Cancellation of Debt income always taxable?
Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing separately.
If the forgiven debt is excluded from income, do I have to report it on my tax return?
Consult your tax professional regarding the effects of a Short Sale to your tax liability.
Here is a list of some of the Lenders that HomeSalesScottsdale has successfully negotiated Short Sales with: